9.36% 7-Month CD at a Maryland CU - $200K Max (SECU)
Oct 1, 2007 - 6:07 PM by Ken Tumin
Update 10/01/07 6:00pm CDT: CD special has been removed from SECU's website, and it has been reported that it has ended.
SECU Credit Union is about to start a special called the Giving Thanks CD. A 2.50% bonus of the intial deposit is instantly awarded. The entire balance then earns 5.00% APY for 7 months. This gives an effective yield of about 9.36% APY. The minimum deposit is $2,000, and the maximum is $200,000. New money is required.
This special is not yet listed at the credit union's website. It was mentioned in this FW thread, and I called yesterday to confirm. I was told it would start on Saturday 9/29/07 and the end date would depend on the demand. They had a similar promotion last year and it ended 19 days after the start of the promo although it came back briefly the following month. After tomorrow, the special should be posted on the website.
Update 9/29/07: This is now listed at the credit union's website at this promo page. Other promos are listed here.
You can apply online for membership into the credit union, but this special CD will have to be opened at a branch or by mail. Membership is open to alumni, full and part-time students, faculty and staff of several Maryland schools and universities. Membership is also open to Maryland state employees and several other select employee groups. You can also be eligible if your family member (not just immediate) is eligible to join. Please see their field of membership page for the full details. Membership requires a minimum $10 balance in the share savings account.
No hard credit inquiry is done when you apply for membership or open deposit accounts. According to the CSR, they only pull credit reports with applications for loans or Visa cards after obtaining member permission.
Branches are located in the Maryland cities of Baltimore, Annapolis, Berwyn Heights, Columbia, Glen Burnie, Hagerstown, LaVale, Rockville, Salisbury, Silver Spring and Towson.
The credit union is federally insured by the NCUA (Charter # 66330). It's a large credit union with $1.7 billion in assets and 248,080 members.
Credit for this find goes to FW member mh83 who posted it on this FW thread.
Edit 10:53am: Added info received about hard credit pull.
SECU Credit Union is about to start a special called the Giving Thanks CD. A 2.50% bonus of the intial deposit is instantly awarded. The entire balance then earns 5.00% APY for 7 months. This gives an effective yield of about 9.36% APY. The minimum deposit is $2,000, and the maximum is $200,000. New money is required.
This special is not yet listed at the credit union's website. It was mentioned in this FW thread, and I called yesterday to confirm. I was told it would start on Saturday 9/29/07 and the end date would depend on the demand. They had a similar promotion last year and it ended 19 days after the start of the promo although it came back briefly the following month. After tomorrow, the special should be posted on the website.
Update 9/29/07: This is now listed at the credit union's website at this promo page. Other promos are listed here.
You can apply online for membership into the credit union, but this special CD will have to be opened at a branch or by mail. Membership is open to alumni, full and part-time students, faculty and staff of several Maryland schools and universities. Membership is also open to Maryland state employees and several other select employee groups. You can also be eligible if your family member (not just immediate) is eligible to join. Please see their field of membership page for the full details. Membership requires a minimum $10 balance in the share savings account.
No hard credit inquiry is done when you apply for membership or open deposit accounts. According to the CSR, they only pull credit reports with applications for loans or Visa cards after obtaining member permission.
Branches are located in the Maryland cities of Baltimore, Annapolis, Berwyn Heights, Columbia, Glen Burnie, Hagerstown, LaVale, Rockville, Salisbury, Silver Spring and Towson.
The credit union is federally insured by the NCUA (Charter # 66330). It's a large credit union with $1.7 billion in assets and 248,080 members.
Credit for this find goes to FW member mh83 who posted it on this FW thread.
Edit 10:53am: Added info received about hard credit pull.
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Anonymous - #1, Friday, September 28, 2007 - 1:18 PM
can somebody explain me how did it gives effective yield of up 9.36%?
Banking Guy (anonymous) - #2, Friday, September 28, 2007 - 1:51 PM
It is a little confusing. Here are the approximate calculations. Perhaps someone can do the math to compute the exact APY.
An instant 2.5% bonus would be approximately equivalent to 4.30% APY for a 7-month term (2.5 * 12/7).
Remember that yields and rates are specified on an annual basis.
So the 5% APY is added to the 4.30%, and with a little more compounding, you get 9.36% APY.
Anonymous - #3, Friday, September 28, 2007 - 2:06 PM
Thanks for nothing mh83 - sfchris
Anonymous - #4, Friday, September 28, 2007 - 2:07 PM
I was wondering the same thing as the 11:18 a.m. question. Here's what I'm figuring, but it's based on simple interest, not compounding, etc. If you deposit $200,000, then immediately receive a 2.5% bonus of $5,000, you'd then have $205,000. $205,000 earning 5.00% APY interest would give you $10,250 if left in the bank for 12 months. Divide $10,250 by 12 months, and you'd earn $854.16 interest earned per month. Multiply $854.16 x 7 months, and you'd get a total of $5,979.16 interest. Your end balance after 7 months with your initial $200,000 deposit + $5,000 bonus + $5,979 interest, would then equal $210,979.16. So if at the end of 7 months you'd have earned $10,979.16, that would equate to approx. 9.36%. That 2.5% bonus is what's getting it to equate to 9.36%.
Anonymous - #5, Friday, September 28, 2007 - 3:27 PM
Get a life sfchris - mh83
Anonymous - #6, Friday, September 28, 2007 - 3:39 PM
no more tips for you - sfchris
Anonymous - #7, Friday, September 28, 2007 - 3:59 PM
You ask a question. You got a straight answer. Perhaps I need to get a life, but you need to grow a brain. Get off this site if you are not interested finding good bank deals.
Anonymous - #8, Friday, September 28, 2007 - 4:59 PM
As if I would ever need a tip from you.
Anonymous - #9, Friday, September 28, 2007 - 5:11 PM
*rolleyes* - envelope, counter, unopened - sfchris
Anonymous - #10, Friday, September 28, 2007 - 5:18 PM
Liar and delusional.
Anonymous - #11, Friday, September 28, 2007 - 6:13 PM
no more tips for you- sfchris
Anonymous - #12, Friday, September 28, 2007 - 7:26 PM
"NO SOUP FOR YOU!"
BTW, Your calculations are accurate. This is the best deal going. I'm joining tomorrow.
9.36 ish %%%%%%%%%%%%
Anonymous - #13, Friday, September 28, 2007 - 7:29 PM
Also...
MUCH THANKS to the poster that found this.
Anonymous - #14, Friday, September 28, 2007 - 7:54 PM
You're welcome, no thanks to mh83 - sfchris
Anonymous - #15, Saturday, September 29, 2007 - 2:35 AM
The big question is, how you can join this CU and get in on this deal if you are neither a Maryland resident nor a student/alumni/worker in the area.
Anonymous - #16, Saturday, September 29, 2007 - 5:23 AM
You're a loser sfchris.
scott (anonymous) - #17, Saturday, September 29, 2007 - 5:28 AM
come on sfchris and mh83, Time to kiss and makeup
Cyclone (anonymous) - #18, Saturday, September 29, 2007 - 10:47 AM
How do y'all come up with an effective yield about 9.36. I get about 9.57.
$10k bonus = $250
$10,250 @ 4.91 APR for 7-mo = $10,547.80 (Bankrate.com)
$10k @ 9.14 APR for 7-mo = $10,547.56
The same calculator says this APR gets an APY of 9.569%
http://www.bankrate.com/brm/calc/cdc/CertDeposit.asp
Cyclone (anonymous) - #19, Saturday, September 29, 2007 - 6:25 PM
Little tidbit from last year:
The promo started Monday Oct 16.
Our Celebration CD is no longer available.
This offer ended the evening of October 19, 2006. Please see our other great CD rates.
The importance of the timing of our awareness of new deals has been illustrated with the now-closed SECU deal - it only lasted 4 business days, Monday through most of Thursday.
Anonymous - #20, Sunday, September 30, 2007 - 2:16 PM
Good luck getting in on the deal! Sounds like it wont be around must longer.
Anonymous - #21, Sunday, September 30, 2007 - 6:44 PM
Unfortunately, cash only, not for IRA accounts.
Anonymous - #22, Monday, October 1, 2007 - 10:07 AM
the application states the bonus CD will automatically renew into a then-current-rate 12-month CD; effectively, it sounds like you should be prepared to park your money for 19, not 7 months; also, presumably the yield over the 19-month period would be diluted by earning only 5% or probably even less in the subsequent 12-month period; does anyone have any idea if it's possible to opt-out from the auto-renewal?
Anonymous - #23, Monday, October 1, 2007 - 10:27 AM
yes, the automatical renew to 12m CD is dangerous, especially when we don't know the exact rate at that time. Don't jump it.
Anonymous - #24, Monday, October 1, 2007 - 10:44 AM
after renew to 12m CD, we still can terminate the CD. The penalty is 3 months interest and may eat principle. Considering 9.36% APY for 7 months, losing 3 months interest at then-current-rate may still be worthy to try.
Anonymous - #25, Monday, October 1, 2007 - 11:13 AM
It automatically renews to 12-months CD, but you still have a 7 day grace period at the end of the term, during which you can withdraw the entire balance without penalty. So, the money is locked for only 7 months, not 19 (assuming you're not out of reach during the grace period).
Cyclone (anonymous) - #26, Monday, October 1, 2007 - 4:54 PM
deal is dead
And yes, just like lasts years bonus cd, you have a 7-day grace (including day of maturity) to not want the cd to renew.
I received a notice that mine from last year will mature in late Oct. I sent them a letter w/ my sig stating to not renew and drop funds into my share account. When I called to check on my Giving Thanks CD, they checked the other one and said it is marked to close out and not renew at maturity now.
Anonymous - #27, Monday, October 1, 2007 - 5:22 PM
Thanks for nothing mh83 - sfchris
Anonymous - #28, Monday, October 1, 2007 - 6:05 PM
mh83 and sfchris, will you please stop writing bad things about each other. None of us regular readers want to see your comments. Thanks.
Banking Guy (anonymous) - #29, Monday, October 1, 2007 - 6:12 PM
cyclone, thanks for the update.
I would have thought that after last year, SECU would have realized the demand for something like this.
Anonymous - #30, Monday, October 1, 2007 - 6:35 PM
SECU isn't excactly run by geniuses or they would have advertised this as a 9.3% CD instead of that weird bonus cash promotion. I agree that mh83 is to blame for the demise of this CD. He did their marketing for them.
Anonymous - #31, Tuesday, October 2, 2007 - 8:34 AM
To Banking Guy: Don't take any crap from anyone being critical of your publicizing good deals. You are THE BEST at what you do, full stop. Sincerely, A Fan.
Anonymous - #32, Tuesday, October 2, 2007 - 8:42 AM
I called and they said that they would honor CD applications with postmarks on or before 10/02/07.
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